HAVELLS: The BIG Leap - Wire & Cable India
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HAVELLS: The BIG Leap

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Mr. Qimat Rai Gupta - CMD, Havells India Ltd.
The Havells group originated as a small trading business in Central Delhi’s Bhagirath Place, promoted by Mr. Qimat Rai Gupta who commenced his trading operations in the year 1958. A first generation entrepreneur bought the brand Havells in 1971, thereby moving up from trader to manufacturer. Over the years the company has managed to create a niche for itself across the globe. Havells India Limited is a $1.3 billion leading fast moving electrical goods (FMEG) company and a major power distribution equipment manufacturer with a strong global footprint. The group comprises of 94 branches, 7000 employees, 50,000+ retailers & dealers globally and has presence across 5 continents and 50 countries. The company has altogether 21 manufacturing units globally comprising of India (14), and 7 manufacturing plants located in Europe, Latin America & Africa. It enjoys its charisma in consumer and industrial electrical products having enviable market dominance across a wide spectrum of products, including industrial & domestic circuit protection devices, cables & wires, motors, fans, modular switches, home appliances, electric water heaters, power capacitors, CFL lamps, luminaires etc. The essence of Havells success lies in the expertise of its fine team of professionals, strong relationships with associates and the ability to adapt quickly and efficiently, with the vision to always think ahead.

Alwar 053002 copySuccess Factors at Havells

The group’s phenomenal success over the years has been due to Mr. Qimat Rai Gupta’s mantra “growth through quality,innovation and market consolidation”. The focus on research and development has enabled the group to develop products for consumers that offer great value for money. His constant emphasis on promoting energy conservation and environmental preservation coupled with his philanthropic service to the economically weaker section of the society is his way of giving back in return to the society that has helped this organization realize its true potential.

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Mr. Anil Gupta - JMD, Havells India Ltd.

Havells: Wire & Cable Division

Wires & Cables forms the substantial share in their product portfolio. Havells journey in wire and cable sector started in 1996 when they acquired a manufacturing plant of power cables & wires at Alwar, Rajasthan from Surya Cables and has also tied up with another company for its sales and marketing activities. With the gradual increase in their scale of operation and volumes they soon started marketing products on their own. Presently, Havells is India’s leading manufacturer of cables and wires with the turnover of Rs. 1800 crore in 2011-12. Their total production comprises of domestic and underground cables with the respective share of 40% and 60%. The manufacturing base is spread over an area of 100 acres. The facility is one of the biggest in India with cutting-edge technology and latest machinery. To ensure that customers receive the best cables and wires, every time the raw material is sourced from the world-renowned suppliers. Their flame-retardant promise is ensured by the in-house production of flame-retardant PVC to provide consistent quality.

Further in 2011, Havells doubled its manufacturing capacity from worth Rs. 1200 crore per annum to Rs. 2400 crore per annum by investing around Rs. 120 crore to modernize and expand the capacity of the plant. Company has expanded the whole range of LT, HT and EHV cables, which has been upgraded from 33 KV to 132 KV. The company is also planning to set up an R&D lab at Alwar, which shall be NABL accredited in due course of time.

Alwar 05 copySome Cable Milestones

During the journey Havells became the first company to enter into FR wires and that’s not all, it also pioneered the market by offering LT XLPE cables at a better price than the other companies who used to charge premium for the XLPE cables. Gradually they shifted 95% of their production based on XLPE compound vis-à-vis installing the technology in accordance to that. Today the facility has the capability to execute the order of any size & quantity. Havells was the first brand to get BASEC certification for its cables. They also have an in-house compounding plant with the capacity to produce 3000 MT of PVC compound every month.

Research and Development at Havells

TableInnovation is the hallmark of every vital development at Havells India Limited. New ideas and inventions deepen scientific knowledge and give any work force a new impetus towards technical progress. Havells technological strengths and its endeavor towards continuous research & development have allowed it to fulfill its responsibilities towards its customers. The responsibility of providing its customers the best products and zero defect services to enable them to be comfortable and secure in usage of electricity. Their objective is to consistently deliver breakthrough products and believes innovation as the means to achieve this. Improving manufacturing processes, developing new products, and entering into new applications is the mission which Havells carries in all its business verticals. In wire & cable division they recently launched the wire with the name S3 which demonstrate the 3 value added safety features like high insulation resistance, ROHS Compliance (lead free wires), anti-termite and anti-rodent.

Strategic Points at Havells

Havells growth strategy is planned and focused and it is also spontaneous and self-energizing. Their strategy includes

Brand building and sustaining leadership position across its product categories

Investing in high growth opportunities

Pursuing attractive export destinations

Strive for global leadership

Continue to invest in research, quality, safety and the environment; and

Pursue growth opportunities, which are strategic to its intents and will have the potential to create greater value for its shareholders.

In the span of 15 years, wire and cable vertical of Havells has become a popular name where the 4-5 decade old companies haven’t made it to that level. This has happened due to the 2 major factors, first the decision making process at the management level is fast, secondly whatever product line they enter into they create huge infrastructure in advance to support that. That is the reason why the execution of orders is so systematic and fast. Also for being closer to the customer and provide local billings to them, Havells has created very big infrastructure by setting up 26 warehouses at all important locations across the country. Recently, Havells has also opened 15 new branches towards a step in the same direction.

Wire & Cable Market in India

The potential in the industry is great but if it is compared with the present power and infrastructure situation then there is a question mark. The industry should grow to the tune of 15-20% per annum in the coming years. Moreover to keep the balance between the raw material cost and price is a challenge in today’s scenario. Further overseas companies are eyeing on India who has strong base outside India in particular segments like EHV (extra high voltage). This has created a sense of competition, which can result in elimination of some of the small or inefficient companies in the domestic market.

To overcome these challenges, Havells is looking regularly for new customers, finding newer avenues by exporting its wires and cables to the tune of Rs. 25 crores to various countries. Recently they have ventured into solar cables and also putting technology to produce instrumentation cables. The testing and approval from TUV for their solar cables is also expected by August 2012. Further, they have restructured their market strategy wherein they have shifted their focus from selling to SEB’s, where getting payment released has become a big concern, to big EPC Contractors who are operating in power, infrastructure & other segments of developments.

Format

Mr. Qimat Rai Gupta – CMD, Havells India Ltd.The Havells group originated as a small trading business in Central Delhi’s Bhagirath Place, promoted by Mr. Qimat Rai Gupta who commenced his trading operations in the year 1958. A first generation entrepreneur bought the brand Havells in 1971, thereby moving up from trader to manufacturer. Over the years the company has managed to create a niche for itself across the globe. Havells India Limited is a $1.3 billion leading fast moving electrical goods (FMEG) company and a major power distribution equipment manufacturer with a strong global footprint. The group comprises of 94 branches, 7000 employees, 50,000+ retailers & dealers globally and has presence across 5 continents and 50 countries. The company has altogether 21 manufacturing units globally comprising of India (14), and 7 manufacturing plants located in Europe, Latin America & Africa. It enjoys its charisma in consumer and industrial electrical products having enviable market dominance across a wide spectrum of products, including industrial & domestic circuit protection devices, cables & wires, motors, fans, modular switches, home appliances, electric water heaters, power capacitors, CFL lamps, luminaires etc. The essence of Havells success lies in the expertise of its fine team of professionals, strong relationships with associates and the ability to adapt quickly and efficiently, with the vision to always think ahead.
Success Factors at Havells
The group’s phenomenal success over the years has been due to Mr. Qimat Rai Gupta’s mantra “growth through quality,innovation and market consolidation”. The focus on research and development has enabled the group to develop products for consumers that offer great value for money. His constant emphasis on promoting energy conservation and environmental preservation coupled with his philanthropic service to the economically weaker section of the society is his way of giving back in return to the society that has helped this organization realize its true potential.

Mr. Anil Gupta – JMD, Havells India Ltd. Havells: Wire & Cable Division
Wires & Cables forms the substantial share in their product portfolio. Havells journey in wire and cable sector started in 1996 when they acquired a manufacturing plant of power cables & wires at Alwar, Rajasthan from Surya Cables and has also tied up with another company for its sales and marketing activities. With the gradual increase in their scale of operation and volumes they soon started marketing products on their own. Presently, Havells is India’s leading manufacturer of cables and wires with the turnover of Rs. 1800 crore in 2011-12. Their total production comprises of domestic and underground cables with the respective share of 40% and 60%. The manufacturing base is spread over an area of 100 acres. The facility is one of the biggest in India with cutting-edge technology and latest machinery. To ensure that customers receive the best cables and wires, every time the raw material is sourced from the world-renowned suppliers. Their flame-retardant promise is ensured by the in-house production of flame-retardant PVC to provide consistent quality.
Further in 2011, Havells doubled its manufacturing capacity from worth Rs. 1200 crore per annum to Rs. 2400 crore per annum by investing around Rs. 120 crore to modernize and expand the capacity of the plant. Company has expanded the whole range of LT, HT and EHV cables, which has been upgraded from 33 KV to 132 KV. The company is also planning to set up an R&D lab at Alwar, which shall be NABL accredited in due course of time.
Some Cable Milestones
During the journey Havells became the first company to enter into FR wires and that’s not all, it also pioneered the market by offering LT XLPE cables at a better price than the other companies who used to charge premium for the XLPE cables. Gradually they shifted 95% of their production based on XLPE compound vis-à-vis installing the technology in accordance to that. Today the facility has the capability to execute the order of any size & quantity. Havells was the first brand to get BASEC certification for its cables. They also have an in-house compounding plant with the capacity to produce 3000 MT of PVC compound every month.
Research and Development at Havells
Innovation is the hallmark of every vital development at Havells India Limited. New ideas and inventions deepen scientific knowledge and give any work force a new impetus towards technical progress. Havells technological strengths and its endeavor towards continuous research & development have allowed it to fulfill its responsibilities towards its customers. The responsibility of providing its customers the best products and zero defect services to enable them to be comfortable and secure in usage of electricity. Their objective is to consistently deliver breakthrough products and believes innovation as the means to achieve this. Improving manufacturing processes, developing new products, and entering into new applications is the mission which Havells carries in all its business verticals. In wire & cable division they recently launched the wire with the name S3 which demonstrate the 3 value added safety features like high insulation resistance, ROHS Compliance (lead free wires), anti-termite and anti-rodent.
Strategic Points at Havells
Havells growth strategy is planned and focused and it is also spontaneous and self-energizing. Their strategy includes
• Brand building and sustaining leadership position across its product categories
• Investing in high growth opportunities
• Pursuing attractive export destinations
• Strive for global leadership
• Continue to invest in research, quality, safety and the environment; and
• Pursue growth opportunities, which are strategic to its intents and will have the potential to create greater value for its shareholders.
In the span of 15 years, wire and cable vertical of Havells has become a popular name where the 4-5 decade old companies haven’t made it to that level. This has happened due to the 2 major factors, first the decision making process at the management level is fast, secondly whatever product line they enter into they create huge infrastructure in advance to support that. That is the reason why the execution of orders is so systematic and fast. Also for being closer to the customer and provide local billings to them, Havells has created very big infrastructure by setting up 26 warehouses at all important locations across the country. Recently, Havells has also opened 15 new branches towards a step in the same direction.
Wire & Cable Market in India
The potential in the industry is great but if it is compared with the present power and infrastructure situation then there is a question mark. The industry should grow to the tune of 15-20% per annum in the coming years. Moreover to keep the balance between the raw material cost and price is a challenge in today’s scenario. Further overseas companies are eyeing on India who has strong base outside India in particular segments like EHV (extra high voltage). This has created a sense of competition, which can result in elimination of some of the small or inefficient companies in the domestic market.
To overcome these challenges, Havells is looking regularly for new customers, finding newer avenues by exporting its wires and cables to the tune of Rs. 25 crores to various countries. Recently they have ventured into solar cables and also putting technology to produce instrumentation cables. The testing and approval from TUV for their solar cables is also expected by August 2012. Further, they have restructured their market strategy wherein they have shifted their focus from selling to SEB’s, where getting payment released has become a big concern, to big EPC Contractors who are operating in power, infrastructure & other segments of developments.
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